Are you sure you want to sell? Pricing your property below the “Clutter”

By Richard Dempsey, Realtor®
Coldwell Banker Commercial Saunders Real Estate

Several years ago, I saw a comic strip that showed a property owner in different conversations about his property. The scenes were all the same except that the person the owner was talking to was different in each scene. As the property buyer in the first scene, he was pointing out all the property flaws to the seller. Talking with the bank appraiser, he was pointing how much better his property was than his neighbors' properties. When the tax assessor stopped by, the property suddenly became a waste dump, and finally when a prospective buyer was talking with him, the house was the most unique property in the world.

That’s an accurate view of the way we think about our stuff!

When trying to price your property for sale, you have to guard against your ownership bias. The amount that you paid for the property has no bearing on the current market value. The fact that the property has been in your family since Noah walked the earth is meaningless in the market. The attribute that meant the most to you may or may not have any value to prospective buyers.

The open market is a cold and cruel thing. The market’s view of your property can be summed up by Sergeant Joe Friday’s famous phrase “Just the facts, ma’am.” Value is related to the cold, hard facts of the property: location, utility, physical attributes, income and expenses, etc.

If you have decided that you are serious about selling your property, taking a step back and looking at it from a prospective buyer’s point of view is very important. Removing your personal, emotional attachment and optimistic financial goals from the pricing decision are critical. Most often, it is wise to have the assistance of a professional. Selecting a real estate agent, broker, or appraiser who is knowledgeable and actively involved in the market for your type of property is very important. They can give you an unbiased opinion.

One of the first factors for making sure that your property gets noticed is pricing. It has been my experience that when you price your property below the clutter, you will attract attention. By “clutter,” I mean that realm of pricing that is reflective of conditions six months or more ago. In most markets today, an abundance of properties are available and often they have been on the market for a long time and become stale. All of those old listings that are priced based on the old market conditions create a cloud. It is easy for a property to get lost in the crowd when there are so many available. That is particularly true in a declining market. Pricing that seemed reasonable originally could be considered aggressive today.

If your property is in a market segment that is expected to have an increase in the availability of properties over the next six months due to foreclosures or other factors, pricing at the lower end or below currently available comparable properties will potentially increase the attention your property receives.

However, reaching the balance between an aggressive asking price and avoiding the impression that the pricing is a “fire sale” number can be tricky. That is why it is essential to have the assistance of a qualified professional that can help you navigate as you fly below the “clouds.”

Richard Dempsey is a Realtor® and Sales Associate at Coldwell Banker Commercial Saunders Real Estate in Lakeland, who specializes in large acreage tracts, citrus groves, and development properties. Dempsey can be found on Twitter at and by e-mail at richard@saundersrealestate.com.

Managing Florida Land – Complex, yet simply beautiful!

by Richard Dempsey, Sales Associate and Realtor

As a native Floridian I have seen a lot of change. Growing up in north Lakeland, I was surrounded by beautiful citrus groves that eventually gave way to cold weather or development. The citrus industry has now moved south of Interstate 4, and with the exception of the ridge along Highway 27, has moved south of Highway 60.

The southern migration generally was initiated in the 1980’s with several freeze events that killed a majority of the groves in the northern regions. Developers love citrus groves, as there are rarely wetlands issues associated with the sandy soils that enable groves to thrive. As the population of our state has increased, many former grove sites have been developed into all types of uses.

During the expansion of the last couple of years, many citrus properties were purchased by investors and national developers with the intent to develop. Not much consideration was given to the value of the ongoing citrus production operation and many times the groves were abandoned. This was a very unfortunate mistake.

The short-sighted view said that the citrus properties would be developed in the short term and there was no need to continue to properly manage the groves. However, the time-consuming processes of development pushed many of these projects beyond the immediate demand resulting in losses in more than one way.

In addition to giving up the agricultural exemption for property taxes, several crop years of fruit were forfeited during a time of historically high fruit prices. The demand for developed properties has waned and generally, the values are now closely tied to the value of the agricultural operation. Consequentially, the value of all of the planning, permitting, and engineering for properties purchased for development, may now be zero. Recent losses associated with a short-term outlook emphasize the need to properly manage land.

Ranch properties throughout the state were also subject to heavy demand for development. As most people drive past large acreage tracts, they do not recognize the complexity of the required management. Cattle operations, sod and row crop farming, wetlands issues, water use and permitting, maintaining the agricultural exemption for property taxes are just a few of the issues landowners face. Operators are also required to comply with a variety of government regulations relating to any chemicals that may be used.

A prudent land manager will also be aware of income opportunities presented by conservation easements. Whether the easement is given in favor of a public or private entity, qualifying properties can generate significant one-time income.

The case for a professional land manager can be made easily. An inexperienced land owner does not know what he does not know and that lack of knowledge can be expensive. A commercial building must be properly managed in order to return the required yield to the investor. In the same way, land must be managed properly.

~~~a little about Richard Dempsey

Richard has received numerous industry awards for outstanding sales in real estate, the most recent being recognized as #21 worldwide among all associates in the Coldwell Banker Commercial (CBC) affiliate network in 2008. In addition, Dempsey received the 2008 #2 rank in the region for sales performance by FGCAR (Florida Gulfcoast Commercial Association of Realtors®), as well as awards by CBC, CFCAR (Central Florida Commercial Association of Realtor®) , and FGCAR. Dempsey is President Elect for the Lakeland Association of Realtors® and serves on committees at the Coldwell Banker Commercial corporate level.

Realtors® Legislative Update 2009

[by Richard Dempsey, President Elect, Lakeland Association of Realtors® (LAR) and sales associate at CBC Saunders Real Estate]

I was honored to be one of LAR's (Lakeland Association of Realtors®) representatives to the 2009 NAR Midyear Legislative Meetings (National Association of Realtors®) in Washington and REALTOR® Days in Tallahassee. I have a deeper appreciation for how blessed we are as a nation to be able to have a voice in how our government operates. When thousands of REALTORS® gather in DC or in state capitals across the country they are noticed.

Our time in Tallahassee this year proved to be especially effective as most of the key talking points we presented to our legislators this year were passed and are awaiting the Governor’s signature.

Senate Bill 360 contained several items that FAR (Florida Association of Realtors) advocated including a two year extension of development permits and impact fee legislation. As of this writing, the Governor has not yet signed the bill. His office originally indicated that he would sign it. However, it appears that he is wavering. Call Governor Crist's office and let him know your viewpoint. It counts!

REALTORS® also had a hand in helping to defeat a very costly proposal known as the “Springs Protection Bill” That bill would have required very expensive wastewater treatment technology and other regulations even though the effectiveness of the technology has not been established and the studies have not been completed.

One of the most interesting and informative forums I attended in DC involved using technology to drive business our way. The forum panel presented the tools and methods that they are using to develop stronger relationships with their targeted consumers by implementing various technology tools. For further information about this forum you can go to the Center for REALTOR® Technology Web Log to see some of the presentations. There are also several valuable links and sources of information there.

I strongly encourage REALTORS® to begin making plans to join us in Tallahassee and Washington next year. As we saw particularly in Tallahassee this year, our united voice can make a difference. In addition, the opportunity to network and attend informative seminars is extremely valuable!

Dean Saunders Receives Global and Regional Real Estate Industry Sales Awards

Dean Saunders has recently received recognition for sales performance in 2008, taking home multiple awards from regional industry organizations, as well as Coldwell Banker Commercial Affiliates.

Dean was recently awarded the Number One Global Sales Professional in the entire CBC affiliate network, worldwide.

He continues to lead Coldwell Banker Commercial Saunders Real Estate to the Commercial Elite top 15 companies in the CBC global network each year.

Coldwell Banker Commercial Awards:
• #1 Sales Professional Global
• #1 Sales Professional Domestic (USA)
• #1 Sales Professional in the State of Florida
• #1 Sales Professional by Specialty - Land
• #1 Sales Professional in Company Overall - Dean Saunders
• Circle of Distinction Award – Platinum
• Commercial Elite Office (Top 15 CBC offices worldwide)

CFCAR Awards (Central Florida Commercial Association of Realtors)
• Hallmark Award - #7 Top 10 Overall Producers
• Hallmark Award - #2 Top 10 Land Producer
• Hallmark Award – Top Producer – Polk County

FGCAR Awards (Florida Gulf Coast Commercial Association of Realtors)
• Pinnacle Award - #1 Top Producer, National / LAND

Dempsey Takes Gold & Top 2% Worldwide Honors

Congratulations to Richard Dempsey of Coldwell Banker Commercial Saunders Real Estate!

Richard is Sales Associate and Realtor® and has received awards for outstanding sales performance in the worldwide network for 2008 from Coldwell Banker Commercial.

• Top 2% Sales Professional Worldwide
• Ranked #21 Sales Professional Worldwide
• Circle of Distinction – Gold Award

The Coldwell Banker Commercial (CBC) organization globally includes over 260 companies and almost 3,000 professionals. Headquartered in Parsippany, NJ, CBC presents the largest geographic footprint in the commercial real estate marketplace.

The Gold Level Circle of Distinction recognition is based on transaction revenue for 2008 and is an honor bestowed upon the top ranking producers among Coldwell Banker Commercial® professionals. It is awarded to sales professionals who produce between $550,000 and $749,000 in Closed Adjusted Gross Commission Income from franchisable commercial services for 2008.

“Achieving the Coldwell Banker Commercial Gold Level Circle of Distinction award is an honor among our sales professionals,” said Rick Davidson, President and COO of Coldwell Banker Commercial Affiliates Inc. “Richard Dempsey has demonstrated exceptional performance that exemplifies excellence in client service for which Coldwell Banker Commercial professionals are known. He is a true asset to our organization.”

Dempsey has been with Coldwell Banker Commercial Saunders Real Estate since 2000 and specializes in large acreage tracts, citrus groves, and development properties. His real estate career began in 1984 as an appraiser for the Polk County Property Appraiser’s Office and thirteen years with an agricultural lender appraising a wide variety of properties. His experience includes small residential tracts to 25,000 acre groves, along with various types of commercial properties all over the state. Having sales and appraisal experience throughout Florida, Dempsey is knowledgeable about the diverse aspects of today’s real estate market.

Dempsey is a Lakeland native and has served on the Lakeland Association of Realtors® (LAR) board of directors since February 2007. As current President Elect, he will serve as President in 2010. He has also served as treasurer for LAR and has served on the Coldwell Banker Commercial technology council. He resides in Lakeland with wife, Christy, and has three sons and three grandchildren.

For more information, please visit www.saundersrealestate.com.

Richard Dempsey Installed as President Elect of the Lakeland Association of Realtors®

Richard Dempsey, Sales Associate and Realtor® with Coldwell Banker Commercial Saunders Real Estate in Lakeland, was recently installed as president elect of the Lakeland Association of Realtors® (LAR) board of directors, serving for one year before taking the helm as president.

(download Saunders Real Estate press release here.)

Dempsey has served on the LAR board of directors since February 2007, as well as serving as LAR treasurer since April of this year.

Since joining Saunders Real Estate in January 2000, Dempsey specializes in large acreage tracts, citrus groves, and development properties. His real estate career began in 1984 as an appraiser for the Polk County Property Appraiser’s Office and thirteen years with an agricultural lender appraising a wide variety of properties. His experience includes small residential tracts to 25,000 acre groves, along with various types of commercial properties all over the state. Having sales and appraisal experience throughout Florida, Dempsey is knowledgeable about the diverse aspects of today’s real estate market. Dempsey is a Lakeland native.

For more information, please visit www.saundersrealestate.com!

Coldwell Banker Commercial Southeastern US Q3 Market Report

Here is your copy of the Southeastern US 3rd Quarter Coldwell Banker Commercial ViewPoint
Commercial Real Estate Market Report: Download Here.

Florida Notes:

Market Conditions Kill Ritz-Carlton Project in Tampa
Developers of Ritz-Carlton Tampa Bay blame market conditions and timing for placing the $420 million project on hold. The developers were apparently unable to obtain financing even though they planned to provide $90 million of their own money for the project.

Florida Real Estate Experts Staying Calm
Florida real estate experts are not panicking in response to the national economic crisis, according to a recent survey by the University of Florida. Florida’s housing crisis is worse than in other states, Archer said. But respondents to the survey think the state will benefit the same way it has in the past, by capitalizing on retirees. But the recent drops in the stock market and the tightening of credit will probably delay the plans of retiring baby boomers, Archer said.

The sale of Winter Garden Village, Winter Garden, FL
A 1.14 million SF regional shopping center, located in Winter Garden, FL has been sold.

110,600 SF Industrial Property in Orlando Under New Ownership
The 110,600 SF industrial property in Orlando has just come under new ownership, courtesy of Monmouth Real Estate Investment Corp.'s acquisition from FE Orlando Investment L.P

215,000 SF Coral Gables, FL Office Project Has First Space Commitment

Rockefeller Group Business Centers Inc. has become the first business to commit to space on the tenant roster at Ponce de Leon Towers, a 215,000 SF office project in Coral Gables, FL.

Southeast Commercial Market Notes:

Southeast Has Retail Edge - Region fairing better than the rest of the country.According to developers and brokers in the Southeast, retail development in this part of the country is handling the slumping development market with more tenacity than the rest of the United States.

Southeast OFFICE - Summary of Market

• Miami was ranked in the top five for the Southeast for Retail Vacancy and Rent Growth for this quarter.
• The number of Office transactions that occurred in the Southeast for this quarter continued its downward slope as well as transaction dollar volume.
• Out of the 359 Office transactions in the US for this quarter, only 83 (less than 25%) occurred in the Southeast.

Southeast APARTMENT - Summary of Market

• Columbia was ranked in the top five for the Southeast for Apartment Inventory and Rent Growth for this quarter.
• The number of Apartment transactions that occurred in the Southeast for this quarter continued its downward slope but transaction dollar volume remained flat.
• Out of the 77 Apartment transactions in the Southeast for this quarter, 33 (over 40%) occurred in Atlanta.

Southeast RETAIL - Summary of Market

• Baltimore was ranked in the top five for the Southeast for Retail Vacancy and Inventory Growth for this quarter.
• The number of Retail transactions that occurred in the Southeast for this quarter continued its downward slop, how-ever transaction dollar volume increased slightly.
• Out of the 272 Retail transactions in the US for this quarter, 56 (only 20%) occurred in the Southeast
  

5 Benefits to the Recipients of Florida Conservation Easements

A conservation easement is a voluntary legal agreement between a landowner and a government agency or qualified conservation organization that restricts specific uses or development on the land. This is a landowner’s way to protect his land for now and in the future. One of the significant benefits of a conservation easement is the protection of wildlife habitats, natural lands, and resources for generations to come.

The seller of a conservation easement is a landowner who desired to restrict development or land use through this option, but still holds on to ownership of the land.

The buyer or recipient of a conservation easement is typically a government conservation program or a private conservation organization. While the landowner seller has specific benefits that make a conservation easement desirable, the buyer or recipient too reaps benefits from this type of transaction.

• Five Benefits to Buyers or Recipients of Conservation Easements


• The buyer or recipient can protect more land resources with fewer dollars by buying rights to the land and not the land itself.


• The buyer or recipient obtains land by way of the conservation easement that might otherwise be unavailable (for example, the landowner isn’t selling the land outright, but is interested in a conservation easement).


• The land continues to provide economic activity.


• The land stays on the tax roll.

Conservation easements benefit all involved. The landowner controls the land, the conservation buyer or recipient is assured that the land will not be developed, and often, the public is the greatest benefactor through preserved recreation areas and enjoyment of natural lands.

For more information on conservation easements, land, commercial, industrial properties, and land and resource management, please visit http://www.saundersrealestate.com/ or call Dean Saunders at 1-877-518-LAND.

~Dean Saunders, ALC (Accredited Land Consultant), is considered in the industry as an expert on process of conservation easements, understanding the needs and processes of the government agencies involved. The company, Coldwell Banker Commercial Saunders Real Estate, is located in Lakeland, FL and offers real estate services for land, commercial, industrial and conservation properties, as well as land and resource management.

Tax Advantages for Landowners Who Sell a Florida Conservation Easement

This article may also be found in its entirety here:
CBCMarketConnect.com
LandThink.com
The pathway to conservation easements
is not always a straight linebut,
more often than not,
is worth the trip.
[Dean Saunders, ALC]

Most landowners are interested in tax advantages when considering a conservation easement. Landowners may receive income tax advantages that include gifting, tax deferred exchanges, and gains used against the basis value. Tax advantages can also assist in the transfer of property from generation to generation and can lower estate taxes for heirs by maintaining the agricultural classification of the land.

A Generational Transfer may benefit a landowner by lowering the value of the property for estate tax purposes. This happens because after the rights to develop it are sold, the highest and best use of the land is usually agricultural.

Gifting is a using the conservation easement as a donation to the government or to a qualified conservation organization. Gifting is treated as a charitable contribution and results in lower Federal income tax.

A Tax-deferred Exchange is an option allowed by the IRS for landowners who owe capital gains taxes because of the sale of property. This defers paying the tax by purchasing another piece of property instead of paying the tax. Known by several terms, a tax-deferred exchange is often referred to as a Like-kind Exchange or a 1031 Exchange.

The IRS allows a tax exchange for owners who have a capital gain because of the sale of a conservation easement. In my award-winning booklet, “We Create Solutions for Landowners: A Primer on Conservation Easements,” see case study #1 for an example of how this might work for you.

Gains Used Against Basis includes basis as the amount you paid for the property, plus the value of any capital improvements, less any depreciation claimed. If you sell a conservation easement, the IRS will allow you to reduce your basis by the amount of the conservation easement, which may result in you not paying any capital gains taxes. In my award-winning booklet, “We Create Solutions for Landowners: A Primer on Conservation Easements,” see case study #2 that uses this tax advantage.

To take advantage of a Federal income tax deduction, a conservation easement must be perpetual and given to a specific division of the government or a qualified conservation organization. Annually, the division or organization monitors the property to assure that the easement is not being violated.

For more information on conservation easements, land, commercial, and industrial properties; and land and resource management, please visit www.saundersrealestate.com or call Dean Saunders at 1-877-518-LAND.

~Dean Saunders, ALC (Accredited Land Consultant), is considered in the industry as an expert on process of conservation easements and understands the needs and processes of the government agencies involved. The company, Coldwell Banker Commercial Saunders Real Estate, is located in Lakeland, FL and offers real estate services for land, commercial, industrial and conservation properties, as well as land and resource management.

8 Benefits for Landowners Who Sell a Florida Conservation Easement

This article may also be found in its entirety here:

CBCMarketConnect.com
LandThink.com

The pathway to conservation easements

is not always a straight line but,

more often than not, is worth the trip.

[Dean Saunders, ALC]

A conservation easement is a viable solution for landowners who want to protect their land from development. Simply put, a conservation easement is a restriction on the use of property owned by an individual, similar to a deed restriction. It is recorded in public records and generally is in perpetuity. Landowners who sell conservation easements can control the ownership of the property, while receiving money for the easement. The government receives assurance that valuable land will be protected from future development.

What are the specific benefits to the landowner? Below is a list of eight of the general benefits for considering a conservation easement:

• The landowner maintains control and ownership of the property.
  
• Each conservation easement is individually structured to meet the needs of the landowner, along with the conservation criteria and can be structured broadly or specifically.
  
• The landowner keeps the land and receives payment for the appreciated value caused by development pressure.
  
• The landowner assures the property is protected for future generations.


• The landowner continues to receive income from his land.


• The property may be sold and the restriction travels with the property.


• Future generations are assisted in the transfer of the land by favorable estate tax treatment.


• Landowners may gain income tax advantages. Tax advantages can assist in the transfer of property from generation to generation and can lower estate taxes for heirs by maintaining the agricultural classification of the land.

For more information on conservation easements, land, commercial, industrial properties, and land and resource management, please visit http://www.saundersrealestate.com/ or call Dean Saunders at 1-877-518-LAND.

~Dean Saunders, ALC (Accredited Land Consultant), is considered in the industry as an expert on process of conservation easements, understanding the needs and processes of the government agencies involved. The company, Coldwell Banker Commercial Saunders Real Estate, is located in Lakeland, FL and offers real estate services for land, commercial, industrial and conservation properties, as well as land and resource management.